Australian shares inched higher on Thursday, helped by gains in mining and gold stocks, while a hotter inflation report dashed hopes of monetary easing and stirred rate-hike worries.
The S&P/ASX 200 index rose 0.2%, or 18.4 points, to 8,622 by 2315 GMT, extending gains to a fourth session.
The benchmark had ended 0.8% higher in the previous session.
On Wednesday, a keenly awaited report showed that consumer inflation accelerated for a fourth successive month in October, markedly overshooting the central bank’s 2%-3% target band.
Market swaps now wager a mere 7% chance of a rate cut in May, compared with 40% before the report came, while bets for a hike by the year-end have swelled to nearly 30%.
Gold stocks rose nearly 2.5% to touch a more than five-week high, after bullion prices advanced overnight.
Northern Star Resources jumped as much as 4.3% to hit a record high.
Miners climbed 0.8% to hit a two-week high, after iron ore prices edged higher on Wednesday, supported by a modest demand pickup in top steel producer China.
Top iron ore miner Rio Tinto climbed as much as 0.5% to a four-week high.
Tech stocks tracked their Wall Street peers higher to trade up 0.9%.
Capping the benchmark index’s gains, heavyweight banks fell 0.2% on fears steady or higher interest rates would squeeze loan demand. National Australia Bank fell 0.3%, while Commonwealth Bank of Australia inched 0.2% higher.
New Zealand’s S&P/NZX 50 rose 0.2%, or 26 points, to 13,587.87, a day after the central bank cut rates as expected.
The country named Rodger Finlay as its new central bank chair.
Earlier in the day, a top central banker said early signs pointed to the economy expanding in the second half, with demand showing signs of stabilisation.
American Dollar Exchange Rate